Ethereum is going to the moon

You have to use phrases like “Ethereum Is Going To The Moon” because after all we are talking about cryptocurrency, the bad boy of the financial world.

I have never been a fan of Ethereum because it is a ‘bag’ or nails as far as I can see. Ethereum is a wonderful casino and if you think about it, how could it be otherwise? Ethereum is a global decentralized computer powered by its own currency. such an interesting idea and software project, I freeze every time I think about it.

In my dinosaur brain, Bitcoin is Microsoft and Ethereum is Apple or if you want to use a metaphor where everyone has lost, Bitcoin is the Atari ST and Ethereum is the Amiga.

I like POW (proof of work) cryptocurrencies where the system is governed based on how much computing power you can apply to maintain the system. I’ve stayed away from Ethereum because it’s heading for POS (proof of stake), a system where oligarch-sized coin owners can call the shots and probably do what the oligarchs do best, poop. on the little ones and fight death among them. Crypto is politics in the form of software, so for me the political framework of cryptocurrencies is crucial. The POS future for Ethereum is a long-term killer for me, but right now it’s not that “long-term we’re all dead” the key, it’s that long-term visibility itself is far from dead.

The “ultimate depression” is on its way and I am coining that phrase here and now. As such, we cannot look beyond the medium term. In the medium term, Ethereum looks incredibly exciting. I am shopping.

Because? Is it my inflationary terror that drives me? No. Ethereum is on a new cryptocurrency phenomenon. DeFi (decentralized finance). Well that’s what it’s called, but most DeFi is boring and almost useless, the exciting part is the crypto loan part where you can store your cryptocurrency in a blockchain system and get interest on it in one way ” without risk “.

This part of DeFi looks like a new form of market. Anyone can participate and everyone is invited. It has no KYC / AML hindrances and delays (know your customer / anti-money laundering) and if it looks like a duck, sways like a duck and quack like a duck, that duck is a brilliant tech casino. Of course all markets are casinos, but if you can come up with a new form of the market and it’s fun, exciting, instant and can be used sensibly or insanely risky, win big / lose big, you’ll have a winner. And they do. And it’s all powered by Ethereum.

Ethereum’s original value driver was the ICO (Initial Coin Offering), another casino on Meth. Regulators have done what they do right and shut it down, but the underlying cryptography is a way to create value outside the jaws of legal monopolies and you can’t keep it at bay indefinitely. So shutting down ICOs didn’t shut down Ethereum, it just left ticking until the distributed computer got another successful app. Here it is.

Two of these DeFi platforms are AAVE and Compound and you should zip and take a look. I had some Ethereum sploshing, so I popped $ 23 worth of value and within seconds saw the value increase by $ 79 billion every second or so. I’ll have to wait a year to make $ 1, but that’s not the point. I just opened a deposit account in a minute, transferred money into it in seconds and now I’m watching it grow instantly and this purely from landing on the beach of a new financial services continent that can come from this.

But let’s forget the password and the excitement.

This will drive the value of Ethereum. It will guide you through the cost of the transaction. A chronic rise in dollar transaction costs increases the long-term value of the dollar currency. This is because the cost of the transaction is driven by an increasing utility of the currency which must therefore increase its value in “fiat”.

So here’s the recent history of Ethereum’s transaction costs.

DeFi is on the move and Ethereum’s transaction fees are on the move and the block size is climbing to new all-time highs.

In summary for cryptography, the use case equals value and this successful new use case for Ethereum will increase its value and price. At least in the short to medium term and for now these are the key times we should be trading.

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Clem Chambers is the CEO of the private investor website ADVFN.com and author of 101 Ways to Choose Stock Market Winners e Cryptocurrency Trading: A Beginner’s Guide.

Chambers won Journalist of the Year in the Business Market Commentary category at the State Street UK Institutional Press Awards in 2018.